Ulta shares tumble on weaker-than-expected outlook, retailer taps Dave Kimbell as CEO

Ulta Beauty shares tumbled Thursday after the retailer posted fourth-quarter sales and profit that fell from the prior year, hurt by weaker sales of cosmetics during the pandemic.

The company also announced that its CEO Mary Dillon will step down in June, and be replaced by its president, Dave Kimbell.

Here’s what the company reported for its fourth quarter, compared with what Wall Street analysts expected, using a survey from Refinitiv:

• Earnings per share: $3.41, adjusted vs. $2.35 expected
• Revenue: $2.2 billion vs. $2.08 billion expected

Ulta reported fiscal fourth-quarter net income of $171.5 million, or $3.03 per share, compared with $222.7 million, or $3.89 per share, a year earlier.

Excluding items, Ulta earned $3.41 per share, topping the $2.35 per share expected by analysts surveyed by Refinitiv.

Net sales fell to $2.2 billion, beating expectations of $2.08 billion.

In November, Ulta announced plans to open up small cosmetic shops within hundreds of Target stores across the country in order to achieve higher sales and expand its reach.

The cosmetics retailer has been hurt by temporary store closures during the pandemic. After reopening stores in July, the company saw its demand return with a strong comeback in its mobile app and e-commerce website.

Read the full earnings release here.